BIJU PATNAIK INSTITUTE OF IT &

MANAGEMENT STUDIES
MBA

SUMMER INTERNSHIP
REPORT 2017

STUDENT NAME : BPUT

REGD .NO:

KAJAL NAYAK

FACULTY GUIDE: ASST PROF. VARUN AGRAWAL

CORPORATE GUIDE: MR.BHABANI

MOHANTY
(Sales
Manager)

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Contents
Topic Page No.

Certificate from the organization 2

Certificate from the faculty guide 3
Acknowledgement 4
Executive summery 7

1. Introduction 9
1.1 Company profile 10
1.2 Industry profile in India 12
1.3 Trends 15
1.4 Industry analysis 18
1.5 Company analysis 21

2. Methodology 27
2.1 Sample
2.2 Type of data
2.3 Data collection method
3. Data analysis 32
4. Finding from the survey 48
5. Recommendation 50

Bibliography 53
Annexure 54
Questionnaire

1
 Biju Patnaik Institute Of IT & Management Studies

DECLARATION

I here by declare that the project report entitled A Study On Business

Potential: A Case Study On Linc Pen is my sincere endeavor. It bonafide record

of the work presented by myself alone at Biju Patnaik Institute of IT &
Management Studies, Bhubaneswar onwards the partial fulfillment of the
requirement of the degree in MBA and the report has not been submitted to any
other educational institutions for any other degree.

NAME-KajalNayak
University Roll No.- 1606258060

CERTIFICATE FROM THE GUIDE

2
This is to certify that work entitled Project title A Study On Business Potential :A Case Study On

Linc Pen is a piece of work done by Students name Kajal Nayak under my guidance and supervision for
the partial fulfillment of Biju Patnaik Instutute of IT & Management Studies

To the best of my knowledge and belief the thesis:

a. Embodies the work of the candidate himself.
b. Has duly been completed.
c. Fulfills the requirements of the rules and regulations relating to the project.
d. Is up-to the standard both in respect to contents and language for being referred to the examiner.

SignatureoftheInternalguide
Date:

ACKNOWLEDGEMENT
3
I am obliged to my Faculty guide Mr. Varun Agrawal for providing time, effort and most of
all her patience in helping me for preparing this project report. I am also thankful to all the
faculty members of our college for their kind cooperation with me to write this report.

I feel immense pleasure to express my deep sense of gratitude to Mr. Bhabani Mohanty
(Sales Manager, Linc Pen & Plastics Ltd.) as an corporate guide whose expert guidance and deep
knowledge help me to complete my project in this short span of time. I am also thankful to all the
staff members of Ling Marketing Service, Bhubaneswar who extended their hands and
cooperation directly or indirectly for successful completion of the training programme.

Lastly, I am thankful to my family members and friends for providing me moral support to do
this project successfully.

DATE: KAJAL NAYAK

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 Executive Summary
The Indian stationery industry is built on the manufacture and trade of a wide of paper products,
writing instruments, computer and daily used stationery like staplers, erasers, binders, punch
machine, children stationery and other related items rather than greetings cards, calendars or gift
wrap. It is further divided into school stationery and office stationery.

The size of writing industry in India s estimated at about Rs. 2300 crores, of which organized
players account for about Rs. 1800 crores. This sector is highly price sensitive and trade push
plays a critical role for low price segments, which constitute a substantial size of the market.
There are presently around 15 large scale, 100 midsize & 900 small-scale manufacturing units
operating in India. Exports worth around US$ 100 million are conducted every year from the
country according to current estimates. More than 125 countries serve as the customer base for
India. Present production capacity accounts for about 40 million pieces a day.

Linc Pens & Plastics Limited manufactures and markets writing instruments and stationery
products. The company is the sole selling agent of Mitsubishis premium range of products in
India. Linc has been following innovation in products due to superior technology as well as in
redefining the market, as a strategy to leverage the first mover advantage and better technology.

Since, huge opportunities are available for the players in this industry; the project aims to
analyze the business potential for Linc Pen & Plastics Limited in Cuttack.

The report is divided into five chapters where the first chapter gives the introduction. The first
chapter is further divided into six sections and the first section gives details about the company
profile with existing product basket. The second section gives the introduction to the stationery
industry in India and helps in categorizing this market into various segments
The third section deals with the trends which have been observed in the past, the ones which are
on currently and the ones which are emerging out the two mentioned before. The fourth section
analyses the industry based on the second and third sections to discuss its strengths and
weaknesses along with the status observed for various market components in the industry.
The fifth section helps to sensitive the reader with current position of the company in terms of its
performance sales wise and product wise. Also, it gives the marketing mix along with the
marketing strategy of the company. Another important aspect of existing sales and distribution
channels is touched upon in this section. It also deals with the ongoing initiatives undertaken by
the company in order to improve sales.
The second chapter the methodology adopted in preparing this report is mentioned. It covers the
sample procedure, types of data used and the data collection method.

The third chapter provides a comprehensive coverage of forecasting concepts and techniques
which shows the analysis of data through tabulation, computation and graphical representation of
data collected from survey.

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The fourth chapter deals with the findings from the survey part which is very much important
after analysis is made.

As we know that only analysis and conclusion is not the end of a research, so in the fifth chapter
the recommendation part is covered which are made after a depth study of the analysis part of
thesis.

In each of the five chapters as described above, every chapter has been scheduled in a manner so
as to enable the reader to appreciate the contents easily. The report is supported by figures and
data wherever necessary with a view to assist the reader in developing a clear cut understanding
of the topic.

I hope this report will be extremely useful for those it is meant. Constructive and healthy
suggestions for improvements of the report will be great fully appreciated.

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 INTRODUCTION

Since the dawn of civilization man has used pen for expressing his thoughts and eventually

declared it to be mightier than the sword. From quills and fountain pens to ball points and gel

pens, writing instruments have evolved along with human history. In India this seeks writing

instrument never really captured the attention of entrepreneurs until branding concepts from the

west blew in with globalization. Though termed as a trade driven market, of late Indian market

analysts have realized the unexplored potential of the humble pen. In the last few decades writing

instrument have graduated from daily life necessities to lifestyle commodities. Flaunting a

branded pen has never been as fashionable as it is now. Today, along with international brands,

India has few national names emerging as strong contenders in this segment, such as Linc,

Luxor, Parker, Reynolds, Rotomac, Cello, etc.

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 Company Profile

Introduction
Linc Pen & Plastics Limited was incorporated by Mr. S. M. Jalan in 1994. The Company went
public through an IPO in 1995 with listings on the Bombay Stock Exchange and the Calcutta
Stock Exchange ,the main object of manufacturing and dealing in all types of writing instruments
and other plastic moulded goods. The company has obtained Certificate of Commencement of
Business on 7th November,1994.

Linc Pens & Plastics Limited manufactures and markets writing instruments and stationary
products. The company is the sole selling agent of Mitsubishis premium range of products in
India. Linc also markets pencils and erasers of Bensia Co. Limited.. It is also a distributor for
Lamys products in India.
The companys mission is to deliver customer value through convenient, innovative and superior
writing and stationery instruments Its vision emphasizes that Linc will strive to emerge as a
leader in the Indian writing instruments industry through value for money products and a
competitive set of supply for materials in the international markets.
The company is headquartered at Kolkata It has two manufacturing facilities- in Serakarole
(West Bengal) and Pilerne (Goa) Its branch offices are spread across Mumbai, Delhi and Goa,
supported by a marketing network of 55 superstockists and 2503 distributors The company has
32 channel partners in all states presently.
The manufacturing facilities at Goa and Kolkata are ISO 9001 certified also, the company has
engaged M/s Price Waterhouse Coopers for implementation of ERP solutions from SAP in their
office.
Linc shares are listed on the Mumbai, Kolkata, Ahemedabad and Jaipur stock exchanges.
Linc has a proven track record of innovations by creating newer price segments leading to
market expansion. In early 2000, the company launched a Gel pen at Rs.10 when the prevailing
price of gel pens from other brands was over Rs. 15 which helped it to capture large market share
in gel pens category.
So, far the company has concentrated in the mass price segment, but the future initiatives in
launching products in higher price segments shall be instrumental in increasing the topline as
well as bottom line for the company.
To meet the demands of demanding and discerning domestic market, Linc associated itself with
Mitsubishi Pencil Co. Ltd., Japan in 1992 in a strategic collaboration for their Uni-ball range. It
also joined hands with Bensia, the highly popular manufacturer of non-sharpening pencils
targeted at the Indian schools-going population giving ample opportunity for Linc to create a
niche among the younger age groups as well.

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Vision
To establish Linc as a global brand known for its values, assertiveness and the acumen to adapt
to the ever-changing environment

Mission
To deliver innovative, user friendly and superior-quality products at the best value to customers,
keeping in mind the prosperity of the Company and its stakeholders

Core Value
We recognize that we are in business to primarily satisfy our customers.
Our performance must ultimately get reflected in the increased value for our shareholders
We treat our employees and stakeholders with the utmost respect and dignity
We observe and adhere to the highest standards of ethical corporate behavior .
We work as a team to continuously enhance stakeholder value and serve our customers.

Product Portfolio

Products portfolio of Linc includes a plethora of pens like gel pens, ball point pens, markers,
whiteboard pens, highlighters etc, in various ink colors and utilities along with pencils and other
school stationery items such as geometry boxes, pencil boxes, rulers, gumsticks and sharpeners
A brief description is given below:

Ball Pens: Ultra, Starview, Smart, Smart05, Line Miler, Line Finer 05, Starflo,Star,
Superfine, Glycer, Gliss, Cyber, Pacific-2, Siren, Sensor, Axo, Sky, Carbon, Class, Elegant,
Meeting, Sleek, Siren Neo, Pacific, Starline, Success, Signetta Gold, Lazor Tycoon Axo,
Lazor Executive

Gel Pens: Ocean Gel, Starline Gel, Smart Gel, Ceramic, Safron Gel, Executive Gel, Ten Gel,
Supreme Gel, Cosmo Gel, Speed 2 Gel, Micro Gel
Office Accessories: Gumstick, Peramanent Marker, Whiteboard Marker, Stationery Ruler,
Highlighter, Markline Pencil, Shaktiman, Lazer Math Box, Linc Math Box, White Ink Pen

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OBG (Refillable): Starview Gel, upreme Gel, Finer Gel, Finer II Gel, Smart Gel, Style Gel, Ten
Gel, Saffron Gel, Executive Gel, Cosmo Gel, Smart Gel, Ocean Gel,
Products from Uniball: Uni Sa-R, Uni Brain, Uni Laknock broad, Uni Sd, Uni Shalaku,Uni-ball
Signo, Uni-ball Vision elite, Uni-ball Jetstream, Uni-ball Micro.
Uniball Gel Pens: Signo DX, Signo MC3, Signo Broad, Silver Metallic, Gel Impact. Office
Stationery from Uniball includes Uni Pro Mark eye.
Products from Bensia includes: Glitter Pencils, Printed pencils, Double Cap Pencils, Rocket
eraser, Rocket crayon, Magic Mountain, Sorceror, Bensia I-Color. Lamy, market leader in
Germany, is the manufacturer of premium writing instruments which includes - Fountain Pens,
Ball Point Pens, Roller Ball Pens, Multi System Pens and Mechanical Pencils.

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 Industry Profile in India

Introduction

The Indian stationery industry is built on the manufacture and trade of a wide range of paper
products, writing instruments, computer and daily used stationery like staplers, erasers, binders,
punch machine, children stationery and other related items rather than greeting cards, calendars
or gift wrap. It is further divided into school stationery and office stationery.
Over a period this industry has seen growth in the domestic market and is now is all set to
become export oriented market For long period China has said to be ruling the export market in
Writing Instruments and as per the source China alone exports around Rs.5000 - 6000 crores
worth goods. India had not entered much in the export field till now because its domestic
demand was very high, at present Indias current export share is barely Rs 200 crores but now the
industry is planning to expand further in its supply and infrastructure thus enabling them entry
into the foreign markets
The size of writing industry in India is estimated at about Rs 2300 crores, of which organized
players account for about Rs 1800 crores This sector is highly price sensitive and trade push
plays a critical role for low price segments, which constitute a substantial size of the market
There are presently around 15 large scale, 100 midsize & 900 small scale manufacturing units
operating in India Exports worth around US$ l00 million are conducted every year from the
country according to current estimates. More than 125 countries serve as the customer base for
India Present Production capacity accounts for about 40 million pieces a day.
India will serve to be the best possible option for them as it is the only country whose
manufacturing cost is almost same as China. If the Indian industries assure product life this is
where the Indian manufacturers and exporters will have an edge over china. But the major
hindrance of Indian writing industry to grow still remains i.e. though it is among the Asian
11
leaders for supplying stationery its international competition is threat to its writing instrument
industry and may stunt the growth of the market within.
Chinese revolution in stationery was indeed a threat to the other nations and India is no exception
to it. China even today spoils the global buyers with innovative and inexpensive creations and is
said to capture a huge part of the market. Though slowly the writing instruments industry is
achieving a well-developed and mature status and quality has also started playing an important
role but still it may take few years more before the end of domination of cheap quality.

Classification

The paper stationery sector is a very essential sector in the stationery industry, which are further
bifurcated into school and office stationery. It is comprises of many products like exercise books,
diaries, planners, organizers, hard bound note books, subject note books, drawing books, plastic
cover, note books, composition note books, filler papers, scratch pads, memo books, memo
sheets, legal pads and spiral note books etc where diaries, organizers and planners are yearly
salable items, notepads, exercise book, long book, etc are daily used items.
In gifts too, the focus is on paper-based products like autograph books, slam books, bookmarks
and party invites Tissue papers and envelopes also constitute as part of the paper stationery
industry since they have also now become important products in offices and schools. No schools
and office can do without envelopes. Also one needs tissue papers to keep one clean in office and
schools Even toilet paper roles and other such products contribute to this industry The demand
for paper stationery is said to be rising and the market enjoys a growth of 5 to 15%
The stationery sector is a cluster of many sectors out of which the most prominent and important
is the writing instruments industry The two most important tools of it are pen and paper Other
materials like pencil, rulers, writing pa erasers etc., which are relevant items useful for
commercial and office use, also play an important role. Even with the advancement age and rule
of technology the writing instrument industry still holds a large share of the market.
School stationery over a period has gained its own importance in the market. It consists of a
wide range of stationery used by teachers and student in the schools. It includes popular
stationery products like notebooks, erasers, pencils, rulers, sharpeners, writing boards, exam
boards, graph books, pencil boxes, geometry boxes, notebook covers, glue sticks, maps, children
paper clips and binders, pencil grippers, calculators and many more to add to the list. These are
available in different types, shapes, sizes and different price ranges in the market to suit every
individual requirement. A child going to the school requires all these stationery for daily use in
school. It could also be termed as the childs necessity as far as school is concern.
Its industry captures a huge consumption in India whose sales seems to be increasing day by day
due to the increasing government plans and policies of achieving total literacy in India.
12
Previously their consumption was restricted to urban areas but with the free education, facilities
in Rural India their consumption in the rural areas have increased tremendously. Its market today
is flooded with manufacturers and suppliers which is extremely fragmented.

Drivers & Major Players of the Industry

New ideas and technological advances in the writing instruments sector should be put into
practice to survive in this competitive market Though gradually and slowly the market is
recovering from buying these cheap goods and it is turning out to be a brand loyal market than
the old conventional market, which used to live on substitute or counterfeit goods Also the
governments goal of reaching towards 100% literacy is bound to increase the demand The
Indian market today is still on the path of discovering new niches with ergonomic designed
products, promotional marketing items and luxury items but in the coming years it is bound to
grow tremendously not only domestically but also in its exports immerging as world leaders in
Writing Instruments
One essential indicator being the absence of a national brand or a chain of branded retail stores,
as is the norm internationally.Here majority of the Industrys market hold is by the people
manufacturing and supplying notebooks and other paper products which include diaries, school
calendars, note pads, long books, graph books etc to the schools and children.
Then the writing instrument industry seconds the market that includes products like different
types of pencils, pen, sketch pen, markers etc, plays the second major role in the school
stationery sector. Apart from that there are many other big and small companies selling other
necessary products like erasers, scales, calculators, pencil boxes, geometry cases, writing board,
art materials etc. Though there is no particular brand ruling the market alone, some big Indian
companies like Camlin Ltd., Hindustan Pencils Ltd., Sundaram Multi Pap Ltd., Pidilite Industries
Ltd., Kangaro Ltd., Navneet Publications (India) Ltd., Jineshwar Writing Instruments (Montex),
ADD Corporation Limited (Add Gel), Line Pens & Plastics Manufactures (Linc) etc have made
their mark and have a strong hold on the stationery market back at home.
The Indian writing instruments market today is still on the path of discovering new niches with
ergonomic designed products, promotional marketing items and luxury items but in the coming
years it is bound to grow tremendously not only domestically but also in its exports immerging
as world leaders in Writing Instruments.

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 Trends

Trends in past:
First these companies had to face the competition only from cheap Chinese goods which were a
threat to the Indian organized stationery sector, but with the advent of international brands like
Faber Castle, Kores, Maped, etc in the Indian market, the market has become highly competitive
in both quality as well as price. Everyday this market is on its heels in creating new innovative
products and ideas which would capture the notice and preference of their customers It seems
that it is the only tool left to survive in this competitive sector
Especially with the children targeted as their customer these stationery manufacturers should be
well updated with the on going market trends, they should be aware of what is the latest
happening in the children world, Though competition drives the market crazy for new products it
has its plus side too as this way the consumer gets the best suitable product he wishes to buy in
different price ranges and gets to choose the best out of the platter displayed in front of him The
manufacturer too gets benefited by competition, he enjoys the healthy competition as it always
keeps him alert on his job and helps him produce the best possible output in the market which
leads to better sales
Chinese products used to rule in writing instrument sector given to the cheap prices offered to
consumer Innovation and top quality goods at competitive prices are the major and only
implementations through which the Chinese dominance could be put to an end.
In India office products have come into more prominence from the last few years. 2005 was a
challenging year for this sector as apart from the foreign and Chinese goods threat it faces, in
2005 it has also seen the invasion of VAT, which had brought a downfall and chaos to the sector
in the mid-year. There were tremendous change seen in the prices in the office stationery
products as the manufacturers and suppliers had to adjust their price as per the government rules
and regulations.
Though in the later half the industry seemed to be subsiding from its VAT fever and also the
corporate buyer who was reluctant to buy bulk goods before due to changes in prices of goods is
no once again loosening his pockets. Although the demand of office stationery has overall remain
in the same graph, the another drawback of this industry is the counterfeit goods or the copied
cheap goods as said in lay mans language which steals away the market from the branded office
goods.
Trends at present:
With the economic boom, expanding market base and increased competition, the Indian writing
instruments and notebooks market, the size of which is estimated at over Rs 4500 crores in 2007,
is witnessing a sharp growth of 30 per cent CAGR in the last three years. The growth is likely to
last at least for the next five years. The market is all set to witness increased competition from
international players at the premium segment and Chinese imports at low-end segment, observed
experts representing leading writing instrument companies
The Indian market for notebooks alone is estimated at over Rs 3,000 crore Companies like Luxor
Junior, which caters to the economical market of coloring, sketch pens, markers, etc, are
registering a multifold growth and the company will soon be introducing gift sets of coloring
books
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Foreign buyers of writing instrument also have been looking for an option Until now they were
buying their goods from china Chinese pens are good looking and cheap but they lack long shell
life and cant provide a good writing experience
Indian paper stationery Industry suppliers are basically converters by nature i e they buy paper
and then convert it into other paper stationery products They have to buy paper from the paper
mills in India Since globalization, the Indian paper stationery industry is growing at a
phenomenal rate internationally but then it has to face global competition as the rate at which the
paper stationery manufacturers have to buy paper in India is 25% more than the International
price as declared in the last budget.
Manufacturers and suppliers try their level best to produce the best quality products at the most
competitive prices under government restrictions. Like any industry the figures of counterfeit
goods in the office products industry is equally disturbing. Though legal care and monitoring is
taken by the companies that their products are not copied, even then there seems to be loopholes.
But one can always keep their fingers crossed and hope that this barrier is removed in the near
future. Slowly, the market is growing mature; the offices purchasing such stationery are now
becoming price and quality conscious now they are ready to spend more if a durable product is
offered to them.
Indian manufacturers have learnt that innovation, flexibility, performance and versatility are the
key area of focus in the design and development of any product. This year a lot of innovative
products were seen in office stationery which were favoring both the extreme angles i.e., either
towards total technology which is booming fast or towards the environment preventive measures
sector.

Emerging Trends:
With increased affordability, supply patterns in the recent years have undergone a drastic change
with consumers increasingly opting for new pens instead of refilling. The writing instruments
market is estimated at Rs 1800 crores. An important trend is that leading corporate have chosen
notebooks and stationery market for diversification, as they realized the potential of kids market
in generating a strong and positive brand loyalty
Apart from this many stationery industry manufacturers have also started manufacturing gift
stationery which the children could gift each other like autograph books, slam books, party
invitations, letter pads, gift-wraps, pop up books & mini books thus sufficing the needs of that
market too.
School stationery industries have come up a big way by contributing in education awareness thus
participating in social programs hand in hand with the government. Some companies have also
adopted villages for providing full education to the rural children and some stationery
industrialist have started contributing some of the companys profit to the government for rural
development. A socially sound company who knows its social role is bound to receive popularity
among others. By this practice in near future the industrialist of school stationery with the
government support will achieve a well educated and developed nation and in turn achieve its
own development too.
Categories like school stationery including pens and pencils are low-involvement categories
because the differences between brands are few. Up to 1986 (when Reynolds was launched), the
quality of writing various pens offered differed hugely, not so now.
15
Also, the stake is low for a category like pens. Not so in others like fairness cream - prices in this
category too are low, they are competitive, but factors like safety and reliability matter. In the
exam season, the sales of branded stationery are relatively higher than others. Reliability plays a
big role for such occasions. For that period, it becomes high-involvement.
People wanted a change from the blue-and-white pen (like the 045 Fine Carbure that was generic
with Reynolds); they wanted variety. The touch-and-feel experience, the clean, relaxed
environment, and responsive staff ensured it was a good idea. Thus, the exclusive retail stores
came into existence for selling stationery to give an experience shopping to consumers. For
various reasons, footfalls were poor, and many were shut down within a year of their operations.
But since, almost four years, these stores have been catching up pace and have been doing
exceptionally well.

16
 Industry Analysis

SWOT Analysis:
Strength

Wide distribution network: - Linc has 55 channel partners and 2025 distributors all over
India.

Large market share: - In the mass segment Linc is among the top 5 companies in India in
the industry.

Large product basket: - Linc offers the broadest product basket of writing instruments and
accessories in the country. Its range includes some of the best known brands in the
writing instrument business: - Uniball Eye, Uni SA-R, Starline, Glycer, Smart, Ocean
Gel, etc. Linc is the sole selling agent for Mitsubishi Pencil Co. Ltd of Japan for their
Uniball range of writing instruments and Bensia of Taiwan. The products range from
Rs. 2 to Rs. 160 and cater to all kinds of customers.

Human Resource: - Linc registered a net growth of 124 individuals in 2009-10 leading to
a total strength of 650 towards the end of financial year under review with an average
employee age of 32.

Production facilities at strategic locations:- In the Eastern Region: West Bengal, in the
Western Region: Goa and with an exclusive production tie-up in the Northern Region at
Noida(U.P.)

Weakness

Dependence on the imported raw material.

Dependence on external sources for procurement of some of the components.
Susceptibility to consumer choices.

Opportunities

Growing and vast market.

Favorable age structure of Indias population.
Increased per capita income prompting an upgrade in the product value chain.
Increased literacy levels.
Booming services sector expanding the working population rapidly.
Buoyancy in the organized retail.

17
 Enormous potential in the export market.

Threats
The stationery industry is growing very fast the organised sector is estimated to be roughly over
20% of the whole and if you include the unorganised sector as well, it will be approximately over
Rs.5,000 crores. Thus, the challenge lies in creating, communicating and capturing value in a
market dominated by local players.
However the only drawback is that a major share of it comes from the unorganised sector. The
18% organized sector faces a lot of competition from the 82% unorganized sector. Also other
promising brand in paper stationery is the ITC brand with its new range of school note books
etc., which is investing heavily to promote its sales.
Local and unorganized players are the biggest threat to the industry as they are known to provide
cheap goods in large quantities which are further affecting the demand of local entrepreneurs
who are producing good quality products but at slightly higher cost as they have to incur the
burden of tax and other government policies.

Porters Five Forces Model

Porters five forces model has been used to further conclude the industry analysis.

Threat of New Players Entry

The Indian stationery industry on the basis of the previous discussion can be termed as an open
industry since it is largely dominated by the unorganized sector. Lack of branding and adequate
awareness makes it susceptible to attack by foreign players easily.
For long period China has said to be ruling the export market in Writing Instruments and as per
the source China alone exports around Rs 5000 - 6000 crores worth goods India had not entered
much in the export field till now because its domestic demand was very high, at present Not only
foreign players, domestic players from the unorganized sector also pose a great threat.

Rivalry among Existing Players

The cut throat competition among existing brands lead then to price wars which ultimately bring
them into competition with small and unorganized players leading to price wars and thus,
considerably 1ower margins Thus, the rivalry among existing players is high
At National level there is no brand ruling this market, only there are regional organized well
known brands like Navneet Publications (India) Ltd and Sundaram Multi Pap Ltd in the west
zone, Pioneer in the east zone, Lotus, Neelgagan and Sona in the north zone and Vidya in the
south zone with a number of other respective regional manufacturers and suppliers. Resources
say ITC is planning to tap only the top 4,000 schools in the country and is sure to immerge
among the next market leader very soon.
Threat of Substitution
18
Information technology is fast becoming an integral part of our lives. With the advent of its
increasing dominance, it is fast replacing the traditional pen and paper ways of writing and
studying since personal computers are now the way to do work neatly, conveniently and cheaply.
So, the threat of substitution remains high but only for a certain segment since substitution
requires heavy one-time investment.
Its pure affordability - its something you can buy on an impulse, or if youre bored of the same
old things, with what you already have. The day people start thinking about them cluttering up
the house, or about why they have to buy another despite having so many already, or why they
cant get a refill for the old pen rather than buy a new one, the industry may not do so well.
Interestingly, people prefer pens with refills even though they would rather buy new pens when
the refill runs out - they dont really buy new refills for the old ones. Even our costs would be
lower if we made use-and-throw pens, but customers dont like that. Its only once in a while that
someone goes into a stationery shop with a bunch of pens and asks the salesperson to fit new
refills.

Bargaining Power of Suppliers

The bargaining power of suppliers and raw material providers remains comparatively higher in
India because most of the raw materials are sourced from other countries and not many suppliers
exist in the same price segment.
.
Bargaining Power of Buyers
The industry is highly price sensitive and trade push plays a critical role in the low price
segment, while brand consciousness in the higher price segment is high The industry is highly
competitive at the lower price segments due to low entry barriers and the presence of
unorganized and regional players Therefore, the bargaining power of buyers is extremely high in
lower segments and lower in higher price segments.

19
 Competitors Profile

Cello entered the field of plastic-moulded ballpoint pens in 1994. With just one model of "Clear
Pen". Cello stormed the market with Swiss tips and German ink. A whole new generation of
writing implements was born, offering clear flow and quality of the highest standards. A
generation which grew into Gripper, Gel, Maxwriter, Impact and many more and continued to
spread into export markets like Europe, the Middle East, the Far East, the U.S.A and Russia.

The company took its first step 35 years ago as a low profile enterprise that slowly and steadily
grew to be the indisputable leader in the plastic industry of India .In mid 1995-96, Cello came
into its own by entering a diversified and highly competitive field of writing instruments. 'Cello
Writing Instruments and Containers Limited (CWICL) was born and a notable growth rate was
achieved immediately. From a turnover of Rs. 2.7 crore in 1995-96 to a turnover of Rs. 240
crores in 2001-02, CWICL has remained committed towards providing a wide range of versatile,
top notch quality, state-of-the-art components and foreign technology .From a modest production
of 20 lac pens per month, CWICL today produces 500 lac pens per month.The Cello factory has
a total area of 1, 00,000 sq. feet and has strength of 3000 workers. With a marketing network of
40 Super Stockiest, 1900 distributors and a professionally trained sales team of over 300, Cello
manages to satisfy millions of consumers in every corner of India .Today, Cello is acknowledged
as a quality brand in the urban and rural markets of India. In addition, it has been well accepted
by a wide range of corporate customers. Cello pens are favourite in the Gulf, Middle East and
Far East countries as well.The makers of Indias favorite Cello pens, are a part of Rs.800 crore
(us$ 182mn.) Cello Group. Lauded as one of the worlds best and Indias largest pen
manufacturers and well known for its dynamism and spirit of innovation ,Cello ceaselessly
endeavors to bring in the newest and the best of technology to set new benchmarks in quality and
innovates constantly to blaze new trails in the market place

20
 G.M.Pens International Pvt. Ltd. is the exclusive licensee of Reynolds,
France, in India and the SAARC countries. Headquartered in Chennai, G.M.Pens has pioneered
the writing instruments revolution in the Indian market. Commencing operations in 1986,
G.M.Pens introduced to India, international quality writing instruments, and marketed them
under the brand name Reynolds. It was also the first company to build a brand in a category that
behaved more like a commodity till then.
Over the last 20 years, G.M.Pens has invested substantially in building a large manufacturing
base with facilities in Chennai and Pondicherry. A state of the art R&D facility, one of the most
sophisticated in the Reynolds family worldwide, has ensured that the latest in writing technology
isavailable to the Indian consumers.

G.M.Pens offers the widest range of writing instruments and accessories in the Indian market. A
variety of writing instruments including ball pens, gel pens, fountain pens, mechanical pencils,
markers, handy boards and childrens colouring pens that cater to consumers from the age group
of six to sixty are marketed under the brand name Reynolds. A continuous focus on consistent
quality and a constant endeavour to provide quality products at affordable prices have ensured
that Reynolds has been the numero uno in the Indian writing instruments market. A substantial
investment has also been made in establishing the Reynolds brand name through the mass media,
especially through television and press ads, in an effort to convert the category from a
commodity to a brand dominated one. The company's products are available in three hundred
thousand retail outlets across India covered through a network consisting of 1800 redistribution
stockists and 27 main stockists. This is facilitated by a sales and marketing team of over 300
professionals.

21
 Starting off as the worlds largest manufacturer of nibs, the company carved
its niche in offering a host of quality writing instruments. Montex became
the only Indian company to have everything from manufacturing
accessories to assembling under one roof.
Under the camaraderie of Mr. Raman Jain, Montex today is a force to reckon, with a product
profile as versatile and innovative.
Montex has been the first in India to introduce Transparent Ball Pens, Trendy Fountain Pens,
Precision Tips, Gel Ink Pens, Roller Ink Pens, Tank Pens, Rubber Grip Pens and Co-molded
Pens. Montex is recognized as a pioneer in the Indian pen industry with innovations to its credit.

In its endeavor to offer the best, the company has combined the advantages of its infrastructure
with the uniqueness of its raw material Supplying associates, who are world-renowned names in
their respective fields. The machineries used for production are some of the biggest brands from
Switzerland and Germany. One up than all these is the thrust on regular updates in the field, and
also consistent research and development. The company has 3 state-of-the-art manufacturing
units, located in the commercial capital of India Mumbai, along with other prominent
locations.
Montex is not only the most popular brand in India, but also recognized world over. Its products
reach out to over 35 countries in the world, covering almost all the continents.

22
 Company Analysis
In this section, Linc vis--vis some of its specific competitors and their initiatives would be
discussed in details.

Performance Analysis
Sales Performance
The sales performance of the company over the last five years has been summarized in figure
below. The sales were seen to be having increasing trend. There has been increase in sales of
more 60% from the last five years i.e. from 12183 lakh to 18758 lakh.

Businesswise Performance
The businesswise performance of Linc was highly dominated by domestic sales as can be noticed
from figure below. As can be noticed, the major share of sales is constituted by the domestic
consumers being more than four fifths of the total business.

23
The share of exports in the past few years can be seen to be increasing but at a very slow pace,
after decreasing for sometime before. This can be attributed to some initiatives taken by the
company for promoting international sales like going online for selling articles and cataloguing.
Although India remains an attractive destination for exports but still the growth seems to be
dormant in view of Linc. It is yet to exploit the opportunity with the required fervor.

Product wise Performance

The products offered by Linc have been categorized into four categories namely pens, pencils,
refills and others which includes the stationery items such as pencil boxes, geometry boxes,
sharpeners, rulers, gumsticks, etc. The figure below gives an overview of percentage sales
category wise.

As can be not from the figure, major sales in the last fiscal year comprised of the product
offerings in the categories of pens which is about three fourths of the total sales As can be seen,
the revenue contributed by the category of pencils is the lowest although there are a lot of
products in this category So, it indicates that more efforts need to be put in for bringing a new
range of products since it a very low involvement category and creating brand recall is extremely
difficult and resource consuming. So, more schemes should be used for achieving better sales
such as free pencil or a sharpener on a pack of pencils or an eraser free of cost for glow pencils
or a reduced price for a pair of printed pencils.

24
Ball pens represented the largest selling models in the Indian writing instruments industry. These
comprised direct fill and refillable pens. The company is a market leader in use & throw pens
segment. Gel pens on the other hand, represented the fastest growing segment in the Indias
writing instruments industry. In this segment, superior quality and affordability of Linc pens was
observed as winning traits because despite of a quicker replacement due to increased ink flow gel
pens enjoyed an increased takeoff in sales.

Marketing Mix

Place
The common story worldwide is that, as the disposable income increases, there is a shift in the
spending pattern from the essential categories, like food to other non-essential categories. This is
now evident in India too and hence it remains one of the most exciting markets offering good
potential for writing instrument industry on the account of favorable demographic mix: younger
population, growing literacy levels, burgeoning middle class, increasing working population,
new retail formats, large untapped markets and vast unexploited territories in overseas markets.
The export opportunities are increasing considerably for Indian companies in view of effective
antidumping laws in many countries against Chinese imports

Price
Linc products are targeted primarily at the mass markets, schools and offices economically
priced to allow better value for the retailers, the products are unique in their price-to-
performance ratio Reliability in supplies, competitiveness and high quality of both products and
packaging are the watchwords of the organization
Although it also has a range of products for the upper segments which is mainly used for
exporting and gifting purposes. The overall pricing of Linc remains in the affordable segment for
mass markets
Due to the price conscious nature of middle class people in India, the concept of refillable pens
was cherished for long. But the variety seeking nature of Indian consumers prompted the
company to launch a new, disposable variant of these pens. Most Indian brands cater to the
Value for Money segment upto Rs.20 while international brands like Uniball, Parker etc. cater
to the semi premium segment operating through exclusive distributors/franchisees.

People
The customers basically constitute of the burgeoning middle class. Some brand loyalty is visible
in the low price segment while brand consciousness is high in the higher price segment. So far
Linc has focused on the mass segments, but the future initiatives in launching products in the
higher segment shall be instrumental in improving the position of the company.

25
Promotion
The promotion of Linc as a brand has not been given that much importance though the company
has ventured into some means such as television commercials and sponsorships. But still there is
a lot of scope for promotion and this is one grey area for the company where lots of work can be
done to see immediate results.

Sales & Distribution Channel

Currently, the writing instruments industry in India is reserved for the small scale sector As a
result; the critical pen components like refills are manufactured in-house while non-critical
components are outsourced, vendors being supported through the supply of moulds and raw
materials. Its branch offices are spread across Mumbai, Delhi and Goa, supported by a marketing
network of 19 superstockists and 782 distributors. The company has 32 channel partners in all
states presently.
Linc primarily distributes its products through wholesalers, retailers and its own outlets which
are known as Just Linc and Office Linc It also caters to the demands of corporate with the
help of Office Linc outlets from where the material is carried out in vans to the destinations.
The idea of starting exclusive outlets has proved to be instrumental in creating brand awareness
and positioning Linc as a credible brand among upper segments. This has also catapulted the
sales of Linc to an appreciable value. Also, the touch n feel experience has helped to attract the
quality conscious people.
In West Bengal alone, Linc products are distributed by about 135 distributors and 14 in Delhi.
Linc has a very string presence in Eastern India and lacks a foothold in other parts of the country.
It boasts of a field force of about 290 strong skilled workers all over India.
The wholesale distributors in West Bengal are concentrated in areas like Sealdah, Bagdi Market
and Raja Bazar. In Delhi, they are concentrated in the areas like Sadar Bazar and Nai Sarak.
The allocation can be justified to an extent by the wholesale contribution graph but it should be
kept in mind that revenue contribution can not be the only decisive factor for allocating
personnel. The market potential needs to be considered in order to exploit the possible
opportunities.

Marketing Strategy
26
Linc has been following innovation in products due to superior technology as well as in
redefining the market, as a strategy to leverage the first mover advantage and better technology.
It introduced the concept of Leak Guard to reduce the chances of leaking and gives a smooth
writing experience. This seemingly simple assurance is patiently derived through a deep
understanding of ink viscosity, responsiveness to temperature extremes and compatibility with
metal and plastic.
Since writing instruments industry is a part of FMCG market, it makes all the more important for
companies to be involved in detailed analysis of their consumer demands and innovate
constantly to avoid getting wiped out
This strategy has been reflected in all the marketing endeavors by the company out of which a
few are illustrated over here
Tip-top, a retractable ball pen, at Rs 2.50 in 2000 when the prevailing market price for
any branded pen was not less than Rs 5
Hi-school gel pen at Rs 10 in 2001 at a time when the prevailing price if the gel pen was
Rs15-20
Introduced Smart OBG, an oil based gel pen at Rs 5 in 2O02 which provides writing
quality of a gel pen at the cost of a ball pen
Ocean Gel, a quality gel pen at Rs 5 in 2003 instead of a prevailing market price of Rs 7

Product cannibalization is mostly evident here since brand mortality is very high in this segment.
So, newer products are launched to maintain the market share by grabbing the share of products
from their own market portfolio.
The company expects consolidate its position as a producer and supplier of quality goods at
affordable prices. Also, it expects to deepen its reach to semi-rural areas with a wider range of
value-added products. It has consolidated its position in the past through direct retail and the
launch of wooden pencils in the past in an effort to emerge among the top three players in the
industry.

Shah Rukh Khan Signed as a brand

ambassador of Linc Pen
Product and Brand Endorsements come easy to Shah Rukh Khan. After having endorsed a whole
range of products from colas to cars and cell phones to computers, Shah Rukh has now been
signed as the brand ambassador of Linc Pen brand of pens.

According to MD of Linc Pen, Mr. Deepak Jalan, Khan was a natural choice as he is someone
who personifies style, entertainment and enjoys widespread popularity across all age-groups.

Linc Pen is now keen on aggressively expanding in Western India and what better way than to

27
rope in King Khan himself to promote their brand. Now don't be surprised if you see your near
and dear ones writing with a Linc Pen. After all it's the SRK magic!!!

Whether Shah Rukh Khan used a Linc pen to sign on the dotted line when Linc Pen renewed its
contract with the superstar for a further one year, may not be known. But what is known is that
the company is very happy with its brand ambassador.

According to the companys spokesperson, Lincs national share has grown and this year they are
already growing sales at 15% as compared to 7% last year.

It seems not just in films, Shah Rukh seems to be in synch with the public even when it comes to
Linc pens. So while on one hand a big cola brand like Pepsi has dropped SRK as their brand
ambassador, the King Khan is still a mega favourite many other brands.

Linc Pen Deal With Rajasthan Royals IPL

Linc Pens, one of the top pen brands of the country, has inked a sponsorship deal with the
Rajasthan Royals team. Under the terms of agreement, which was signed earlier , Linc Pen
would be an Associate Sponsor and the Official Pen of the Rajasthan Royals for IPL 2010.

The Jaipur IPL franchise team Rajasthan Royals is owned by a consortium of international
investors comprising of Suresh Chellaram, Manoj Badale, Lachlan Murdoch, Raj Kundra and
Indian actress Shilpa Shetty. Rajasthan Royals are expertly captained and coached by legendary
Australian cricketer, Shane Warne. The squad has a good mixture of experience, youth and
emerging talent like Graeme Smith, Yusuf Pathan, Munaf Patel & Kamran Khan.

On this association, Mr. Deepak Jalan, Managing Director, Linc Pen said, We are extremely
proud to be associated with Rajasthan Royals, the winners of the inaugural IPL tournament. The
Rajputs of Rajasthan are known for their courage, strength and fighting prowess qualities
epitomized by the Rajasthan Royals in IPL. We are extremely privileged to be associated with a
team, which has always displayed so much promise.

Mr. Raghu Iyer, Chief Marketing Officer, Rajasthan Royals said, We are delighted to have a
brand that is one of Indias leading writing instrument companies as the Associate Sponsors. We
are working with Linc Pens on an activation program involving schools which will help grow
our brands and we look forward to a fruitful relationship with them.

Recently, Linc Pen has also renewed contract with Shah Rukh Khan as their brand ambassador
for the second year and will soon unveiled their new advertising campaign with him.

These were the good marketing strategy adopted by company which has increased their sales.

28
Ongoing Initiatives
Due to the unavailability of concerned people, the discussion could not be carried out at length
because of which the data in this section remains incomplete and to the best of the writers
knowledge.
There are various initiatives currently being carried out successfully by the company such as:
i. SPELL1NC:
It is an annual spelling competition attracting participation from about 125 schools across West
Bengal It is a highly successful initiative for creating brand awareness as well as promoting
sales.
ii. Advertisements:
Point of sale materials and hoardings are being done for shop branding but on a milder note it is
suggested that a smaller territory be selected for such purposes and completely covered on such
account Disney & CN (pencil) and Star Plus (pens).
iii. Customized package for big retailers like Big Bazaar. The demand and needs are catered to as
precisely as possible.
iv. Distributor Schemes: To induce tendency and stock them with Line stocks to avoid them from
switching over to other writing instruments companies, various schemes are being launched
regularly.
v. Tie-ups with retail bookstores like Crossword, Landmark, Reliance, Big Bazar, Pantaloons,
Staples, ABG, Starmark, Spencers (Daily).
vi. Retail Stores: Just Linc & Office Line in metros like Kolkata, Mumbai and Lucknow to offer
a one stop solution for all products manufactured and marketed by the company in 2004.
vii. Pricing strategy: Exceptionally low prices offered for better quality have been able to mould
consumer mindset to avail a different pen, ink and size for different moods, needs and situations.
viii. Creating a style statement through pens: Line engaged a new product development team for
catering to this need of the customers which is still successfully running on board. It studies the
consumer preferences and predicts how they are going to evolve in future.
ix. Efforts to enter all the towns in India with a population of less than 50000 is a wonderful
initiative to expand the markets for increasing sales.
x. Social initiatives such as support to charitable institutions in Cuttack through free supply of
pens.
xi. Sponsorship of kiosks with first aid-boxes in about 50 schools across Chennai, complying
with International Red Cross specifications.
xii. Commissioning traffic education displays outside 50 Bangalore schools aimed at spreading
road safety awareness among students.

xiii. ERP Implementation:

The company has implemented an ERP solution integrating various functions of the company. In
the first stage, Howrah depot, the Serakole factory and the corporate office were integrated The

29
Pilerne factory and the other branch offices were connected in the next stage. The principal
benefits of the ERP include
Better management of in-house and vendor efficiencies
Improved quality monitoring and customer servicing
Stronger payments collection through an automated alert system
Improve supply chain management
xiv. In store branding: Exclusive assortment for Line pens.
xv. Schemes on bulk buying: liquidation of stock, pushing of sales on launch of new products
and promoting various products.

30
 METHODOLOGY
Methodology is defined as

1. "the analysis of the principles of methods, rules, and postulates employed by a discipline"
or
2. "the development of methods, to be applied within a discipline"
3. "a particular procedure or set of procedures

Methodology refers to more than a simple set of methods; rather it refers to the rationale and
the philosophical assumptions that underlie a particular study.

This study is conducted in the territory of CUTTACK city by using random sampling of one
hundred (100) consumers
.
Data collection
1. Measurement instrument: structured questionnaire
2. Method: survey

Sources of data

A. Primary data- primary data were collected through a well structured questionnaire
designed separately for consumers. A pilot survey was conducted to test the utility of the
questionnaire and necessary changes being made.

B. Secondary data- secondary data are collected from various WEB SITES
(www.yahooanswers.com, www.lincpen.com )

Sampling

Sample size: I approached 128 people out of which 100 people respondent, out of which 90
have used linc pen and 10 people has not used linc pen

Sample procedure: Random sampling

Sample area: Cuttack

In Cuttack the area covered is Buxi Bazar, Cantonment Road., College Square,
Badambadi, Jail Road, Choudhary Bazar,etc.
Analysis
Data collected from the survey through systematically framed questionnaires and those are being
analyzed and shown in graphical representation.

31
 DATA ANALYSIS

The demographic characteristics of the sample size are:-

1) Age Group:

As it is shown in the pie chart that among the people surveyed 40% of them where
at the age of 20-30 and 30% were at the age of 30-40

2) Gender:

In the sample size the sex ratio is 72:28. 72% people are male and the rest 28% are
female

32
 3) Occupation:

Among the sample the occupation of the people mainly are businessmen, service
people and students. We can see from the graph that round about 30% people
belongs to these occupation.

4. Income (per month):

As it can be seen from the chart above that the major income group of the sample
is from 2000 & below i.e. 26% and all the rest income group are almost having the
equal weightage i.e. from 16- 18% except the income group of 2000-5000 which is
8%.

Data Analysis
33
 5. How often do you purchase a pen?

As it is seen from the graph that 28% of people purchases pen on impulse, 26% of
people purchases pen on monthly basis, 22% of people purchases pen fortnightly &
18% of people purchases pen on a weekly basis. The findings from this question is
not very clear it seems that 28% of people purchases pen on an impulse basis and
26% on monthly basis. It means that 28% does not plan to purchase pen & 26%
plan to purchases pen on a monthly basis.

6. Which type of pen do you use?

From this graph we come to know that 60% of people use ball pen,
26% of people use gel pen, 8% of people use ink pen & 3% of people use roller
pen. Its clear from the data that ball pen are more in demand than the gel pen, ink
& roller pens.

34
 7. Which price range of pen do you prefer?

From the above graph we come to know that 52% of people use price range of 5-
10, 18% of people use price range of between 10-20 & 20 & above. At last we
come to know that 12% of people use price range between 5 & below. It means
that company should introduce more pens in this range because about 50% of
people prefer to purchase the price range of 5-10.

8. What feature do you prefer most at the time of purchasing pen?

From the above graph we come to know that 32% of people prefer tip feature at the
time of purchasing pen, 30 % of people prefer style feature at the time of
purchasing pen, 18% of people prefer grip feature at the time of purchasing pen,
12% of people prefer ink feature at the time of purchasing pen, & 8% of people
prefer others feature at the time of purchasing pen. So, we can say that the
company should concentrate more on the tip and the style of the pen in order to
increse the sales.

35
9. What influence you the most while purchasing pen?

It is clear from the graph that the most influencing factor at the time of
purchase is the Price and the display of the product, so the company should
concentrate on the display of the products in the retail counter so as to
improve the sale of the products. The second most influensing factor is the
availability and the shopkeeper to an extent, so there should be an
uninterupted supply of the product as per the demand of the products in the
market because the consumer never goes from one shop to another in search
of a perticular brand of pen they purchases those from the available ones.

10. Have you heard about Linc pen?

As it is clear from the pie chart above that the Linc pen is having a high brand
awreness in the market. 100% of the people said that they have heard about the
linc pen.
36
 12. Have you used Linc pen?

As it is seen from the graph that 90% of the people who have heard about
tha linc pen had used linc pen but 10% of the people who have heard about
the linc pen but had never used it. These shows that is there is a scope for the
improve in sales because it has to turn the non user of the product into the
user of product.

13. Which brand of Linc pen do you prefer the most?

The most preferred brand of Linc pen is OCEAN GEL, GLYCER and SMART
GEL. So its very good that this all brands are doing very well in the market.
But if the company wants to grow it has to grow as a whole then they need to
focus on other brands also if they wants to make an excellent brand image in the
market.
37
 14. Why do you prefer this brand?

From the above graph we can conclude that the people prefer the brand
mainly because of the style of the pen, secondly they prefer the brand
because of the comfort they enjoy while writing with the pen. So the
company should concentrate on the style and comfort along with other
characteristics of the pen so that the company can tap more market share.

15.Are you satisfied with the Linc pen?

From the pie chart we can conclude that the 93% of the people are satisfied
from the linc pen they have used but there 7% of the people who are not
satisfied from the linc pen. The company should try to convert this unsatisfied
consumer into satisfied customer so that these 7% of the consumer does not
create a negative word of mouth which can impact the sales of the product
38
16.Is the required pen is easily available in your nearest store?

From the graph we can see that 89% of the people said Linc pen are
easily available in their nearest store whereas 11% said that it is not
always easily available in their nearest store. So we can conclude that
company has a good distribution system but there still a scope for the
improvement in the distribution system. There are still some untapped
area where the company need to tap in order to increase the market share

17.How would you rate the quality of the Linc pen?

39
 As we can see from the graph that 55 respondent out of 90 said that the
quality of the linc pen is good and 27 said that the quality is average, and
only 8 respondent said that its quality is excellent. It means that the
quality of the linc pen is good but there is scope for the improvement in
the quality of the pen because only 8 respondents said that the quality of
linc pen is excellent. So in order to increase the market share it should
improve its quality a bit more from good to excellent.

18.How would you rate the price of the Linc pen?

we can see from the graph that 45 respondent out of 90 said that the pricing
policy of the linc pen is good and 40 said that the pricing policy is average,
and only 5 respondent said that its pricing policy is excellent. It means that
the pricing policy of the linc pen is between good and average. There is
scope for the improvement in the quality of the pen because only 5
respondents said that the pricing policy of linc pen is excellent. So in order
to increase the market share it should improve its pricing policy from good
to excellent. Because the price plays a important role in the purchasing of
product

40
 19.Which brands pen do you prefer (except Linc)?

As it is clear from the graph that the most prefered brand other than Linc is Cello.
It is the market leader in this segment and the toughest competitor of Linc pen.
Other companies which is prefered is Win and Reynolds. Win is a new company
which is a new company, doing well in some of the areas and emerging as a
competitor for linc pen.

20.Why do you prefer this brand?

As we can see from the graph that 48 respondents prefer this brand because they
are very comfortable in writing and 24 prefer it because of its style. So the
company should

41
 21. How often do you try new brand?

We can easily conclude from the graph that 66% of the pen consumer are switcher.
They keep on trying new brand of pen. The rest 34% of people are brand loyal
person they rarely shift from one brand to another. The company should keep on
introducing new brand of pen so that the sales can be improve.

22. If generally, then why do you look for different brand?

There are 66% of the people who often try new brands and the major reason for the
switch in the brand is that the product is new in the market and the other reasons
are variety, current fashion, quality of new brand and some said that they got bored
from the previous brand they were using. So, the company should keep on
introducing new pen in the market in order to increase the market share.

42
23.How important is the brand?

As we can analyse from the above pie chart that for 60% of the people
brand is important for them, for 20% of the people it is very important
and the rest 20% it is not important at all. So we can conclude that brand
is important for the consumer and there is low threat from the local pen
manufacturer. The brand is important for the consumer if the price range
of the product is high and in case of low range pen i.e. of Rs.5 & below
they do not look the brand they just purchases the pen which the
shopkeeper gives them or the pen which are available in the retail store.

43
 Findings of the survey

The most Important thing which I found out while doing my survey was First of all most of
the respondents generally dont prefer very expensive brands of pens, They are not savvy
about the expensive pens they just want a combination of pens which is good in style, which
writes very smoothly and also most importantly which is very comfortable to hold

Since my project was regarding the survey of linc pens and to see the customers reactions
and understand the needs and preferences of customers.

While doing my survey I was very happy to know that 100% of the respondents were very
much aware of Linc pens and the company out of which 90% of the people in fact have used
the product of this company

I also found that people of different classes and from different backgrounds all prefers this
product. Moreover it is very well known and mostly used products among students and
service holders.

Since pens of this company are available in different ranges so it is very helpful and easily
available product of people of different income groups. May be who is not earning like
students they also and mostly go for this product. This is what exactly is tapping of market ,
they have tapped mostly every segments of people.

The most preferred brand of these pens was OCEAN GEL, GLYCER and SMART GEL. So
its very good that this all brands are doing very well in the market. But if the company wants
to grow it has to grow as a whole i.e. they need to focus on other brands also if they wants to
make an excellent brand image in the market.

If I talk about the satisfaction part then almost 90% of the people who are using this pen are
highly satisfied with the product. The reason behind this is it is reasonable, affordable and
easily available to all the people.

The easy availability of the product shows that the company has already penetrated the
market it has already captured most of the markets. It has mostly tapped all the segments of
the people, the reason is its pens are available every where in gala shops, in pan shop in the
small towns and in semi urban areas in malls, stationary shops and good stores in urban
areas.

So its time now to just focus to build up and push up the other brands of the company which
are lagging behind ,and also to develop and concentrate to develop some attractive and good
products for higher segment people.
44
 So according to my findings of the survey people are very satisfied with the products of Linc
pens, company is very customer oriented they make very customized product which is the
main reason rarely people switchover to other brands or other company

So now the focus of the company should be that it should be able to make 100% customer
loyalty and by its good innovation and good quality and better availability which are already
there should not allow the customers to switch over to other brands.

The brand is important for the consumer if the price range of the product is high and in case
of low range pen i.e. of Rs.5 & below they do not look the brand they just purchases the pen
which the shopkeeper gives them or the pen which are available in the retail store.

The major consumers of the Linc pen are the student. The pen sales mainly depend upon the
students. The student prefer pen with a good look and comfort in writing.

45
 RECOMMENDATION

Quality of the pen is good but the getup or the looks of the pen is not up to the mark. So the
company should also focus on the looks of the pen because student purchase pen depending
on the looks of the pen
Some of the retailers complained that they are not getting the scheme in time due to which
they are demotivated and not placing the further orders.
Linc has a very limited items in Rs.5 range, company should introduce more pen in this range
with different get-up
Company should introduce high range pen i.e. Rs.40-60 with a good get-up and good
packaging, which could be used for the purpose of giving gift to the friends, peers and
relatives.
As per the market survey I found that the company should launch a gel pen in the range of
Rs.10 which is very demanding in the market and some of the competitors are doing well in
this segment.
Company should increase the variety of pen because the major consumers of the pen are the
students; they prefer new variety of pen each time they purchase a pen with a good look.

Improvement of Brand Awareness

Advertisements on popular channels like cartoon network, MTV Channel and more of
such would help in addressing the awareness issue among the youngsters.
Also, selecting cheaper channels on TV like DD which is popular among rural segments
can help to sensitize the lower segments to the existence of the organization and its
quality offerings
A suitable time like the afternoon when the school gets over or in the evening when the
children get hooked to the television for watching some of their favorite shows will
ultimately help to boost the sales manifold
Which games or cartoon characters are the children currently fond of? What is the latest
development in the education field? All this information will keep the manufacturers and
suppliers, the closest associates of the organization at par with their customers likes and
dislikes and eventually this will help boost the brand and create a good demand for the
product in the market It is seen that along with brand building techniques other factors
like trade marketing & strengthening the distribution channels also helps the company to
grow
Painting hoardings to create brand awareness:
For instance, using these hoardings for stationery shops, back of buses especially school
buses, putting them in recreational areas like near a cinema hall and educational
institutions.
Increasing visibility in shops by offering lucrative discounts and offers on bulk sales in
order to stock the products in shop and also to avoid the shopkeepers going for other
product purchases from his fixed investment.

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 Find alternate media for advertising such as radio, newspaper and posters in strategic
locations like near or outside schools and colleges.
Newspapers in this regard can also prove to be a medium for increasing sales by
introduction of various schemes on launch of new products to reach breakeven sales
much earlier and increase the life of the product in market. For instance, schemes like a
rupee off on producing a newspaper cutting of an advertisement of Linc can help increase
sales or a pen free on purchase of 3 pens by producing a newspaper cutting.
According to the budget allocated for sponsorships, granting finances for gaining more
visibility can prove to be a good option Granting sponsorship for annual functions or
sports day in schools for a small budget or sponsoring some quiz shows on television can
help to secure good notice ability.

Improvement of Sales & Distribution

Competitions
Art & Craft competitions, story writing competitions or any such competitions which
involve the use of stationery can help them improve sales. Similarly, for creating referrals
which is the main source of contracting at Line, competitions for employees of kids can
be carried out at regular intervals or for the employees such as signature competitions
Canteens:
Tie-ups with school canteens for displaying Line products exclusively in a corner of the
shop where the visibility is high can prove to be a phenomenal sales booster. Since the
private schools which boast of students coming from affluent families necessarily have a
canteen and a stationery shop, these places can be tapped as a potential source of sales.
Distributor network expansion:
Although this option has been looked at length before also, but this needs a more serious
attention looking at the increasing rate at which the small and unorganized players are
mushrooming in the market. For emerging as the leading player in the market, vendor
management has to be extremely efficient in order to reduce the costs as well as penetrate
more territories in lesser time more effectively.
Focus on rural segments:
Setting up exclusive kiosks in rural areas is a low cost involving exercise which can help
take care of the target segment more efficiently and effectively.
Pricing keeping in mind the consumer convenience:
Now a day, everything is strategically priced in multiples of 5 in order to create
convenience for customers in shelling out the money involved whereas, Linc has many
products violating this code
Therefore, it is recommended that the pricing be done accordingly

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 Gifting stores
The chains of premium greeting and gifting stores like Archies, Hallmark etc display the
range of products like premium pens and other gift items such as pen stands, visiting
cards holder etc
So, in order to increase the sales of cards and other gift items, such avenues can be tapped
by taking into consideration, a suitable cost-price equation
Introduce schemes more frequently for end customers as well as for retailers and distributors
Introduce the concept of KPIs or Key Performance Indicators for retailers and distributors for
motivating them to boost sales.
More aggressive strategy to approach corporate for converting contacts into contracts.
Related diversification in other fields of stationery industry like paper products can give Linc
an image of exclusive stationery products stop.

Improvement of Exports
The links leading to the website for writing instruments industry are not visible even on the
second page of search on popular search engines like Google. So, assess the means by
which more visibility can be brought about on the internet since, this is the main medium of
disseminating information to clients about products.
Improve the content of website to gain credibility and immediate attention. The website
launched recently is going to prove instrumental in bringing recognition to the company but
still it needs more revision in terms of being interactive.
May be, the customer can be given a choice to design his own writing instrument and
then allocated a suitable product matching the closest to suit his choice instead of going
through the whole catalogue. Also, in terms of queries addresses and about the company
sections still need further improvement
Enter emerging markets for gaining a first mover advantage in line with the flying geese
model.
Hedge the currency and market risks properly to ensure regular payments. For this, make safe
sales by covering timely receipts.

CONCLUSION
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 Linc is one of the emerging FMCG Co. The company has registered a 65 percent growth
rate within the span of five year, a record high for any brand in the Indian writing instrument
industry.
The company has an advanced technology and economical pricing strategy. It has cornered
a niche market in the companys urban, semi urban and rural markets. Apart from domestic
market, linc also manufactures high end pens for the international market. As the retail revolution
gripped the entire nation the company had also venture into retailing and they have launched linc
outlets in major cities of the country.
The pen industry is basically a labour intensive having vast employment potential.Due to this
there is a greater need for a well knit distribution system to help the industry to grow and meet
the needs of millions and millions of Indians who are striving to achieve a higher standard of
living.

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 BIBLIOGRAPHY

Marketing Research & Consumer Behaviour

By: - S. Sumathi & P. Saravanavel

Marketing Management
By: - Philip Kotler

Research Methodology
By: - C.R Kothari

Images Retail magazine

Annual Repot of Linc Pen & Plastic Ltd.

WEBLIOGRAPHY

www.lincpen.com

www.lincpen&plastic.com

www.yahooanswer.com

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 Questionnaire
I, Ms. __________ am a student of MBA under BIITM, Bhubaneswar conducting the
project work for my partial fulfillment of the degree. Kindly co-operate me for the
filling of questionnaire.
1. Name:
2. Address:
3. Age:
a) 10-20 b) 20-30 c) 30-40
d) 40-50 e) 50+

4. Gender: a) M b) F
5. What is your total monthly income (Rs.) (Put a tick):
a) <=10K _____ b) 10K-20K _____ c) 20K-30K _____ d)30K-40K _____
e) 40K-50K _____ f) 50K-60K _____ g) 60K-70K _____ h)70K+ _____
6. Are you a:
a) Salaried Employee d) Professional
(PS/Govt.)
b) Salaried Employee (Pvt.S) e) Students
c) Businessman/woman f) Others (Specify) _____________

7. How often do you purchase pen?

a) On impulse b) Weekly c) Fortnightly d) Monthly

8. Which type of pen do use?

a) Ball pen b) Gel Pen c) Ink Pen d) Roller Pen
9. Which price range of pen do you prefer?
a)5 &bellow b)5-10 c) 10-20 d) 20+
10. What features do you prefer most at the time of purchasing pen?
a) Tip b) Grip c) Style d) Ink e) others
11. What influence you most while purchasing pen?
a) Price b) Availability c) Shopkeeper d) Friends & relative e) Attractive display
12. Have you heard about linc pen?
yes No
13. Have you used linc pen?

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 yes No
14. Why do you prefer this brand?
a) Style b) Grip c) Comfort d) Price e) Features f) Body Color g) Others
15. Are you satisfied with the pen?
yes No
16. Is the required pen being easily available in your nearest store.?
yes No
17. How would you rate the quality of the linc pen?
a) excellent b) good c) average d) below average e) poor
18.Which brands pen do you prefer except linc ?
a) Cello b) Elkos c) Flair d) Win e) Reynolds f) Others
19. Why do you prefer this brand?
a) Style b) Grip c) Comfort d) Price e) Others
20. How often do you try new brand?
a) Rarely b) Generally
21.Ifgenerall, then why do you look for different brand?
a) variety b) current fashion c) not satisfied with previous brand
d)quality of new brand e) new in the market f) bored with previous brand
22. How important is the brand?
a) Important b) Very Important c) Not important at all

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